SK ecoplant paves way for RE100 at Green Energy Center

Industry

Published: 14 Nov. 2023, 16:01

SK ecoplant paves way for RE100 at Green Energy Center

SK ecoplant's Gyeongnam Changwon Green Energy Center in Changwon, South Gyeongsang [SK ECOPLANT]

CHANGWON, South Gyeongsang — Packing solar and hydrogen energy storage batteries and vehicle-to-grid technology all within a single site, SK ecoplant is charting a new pathway for smaller manufacturers to turn carbon-free at its Green Energy Center.

Located in Changwon, South Gyeongsang, the center is designed to be a self-sufficient industrial hub for local exporters struggling to procure cost-competitive clean energy, according to SK ecoplant.

“What sets this center apart from the rest is its complex configuration, which not only supplies renewables for RE100 but also combines other disparate energy production and storage systems such as fuel cells, water electrolysis, ESS [energy storage system] and vehicle-to-go technologies into one,” said Oh Seoung-hwan, vice president of the distributed energy business at SK ecoplant during a press event Thursday.

“This is the first of its kind in the world,” stressed the vice president.

The goal is to verify the business model at the Changwon center and scale it up further for larger applications.

SK ecoplant's Gyeongnam Changwon Green Energy Center in Changwon, South Gyeongsang [SK ECOPLANT]

Amid the accelerating transition away from fossil fuels, pursuing the RE100 initiative — a campaign aimed at shifting companies' operations to 100 percent renewable energy — has become a necessity rather than an option.

For export-oriented businesses in particular, securing renewable energy is vital for their survival in the global market, given the rising environmental compliance standard.

“SK ecoplant’s RE100 business is not merely about selling electricity, as we believe that this can provide a breakthrough for our clients, especially in terms of overseas exports,” said Oh.

With 2-megawatt solar panels lined up on one side and lithium-ion energy storage batteries and fuel cells on the other, the center currently houses four local companies, including Hyundai Minuteness, an auto parts supplier.

“If you can't meet your client's [RE100] requirements, you can't do business with them,” said Hyundai Minuteness CEO Oh Jeong-seok. “It used to be a recommendation, now it's a requirement.”

The four companies at the Changwon center signed a long-term direct power purchase agreement with SK ecoplant to secure a stable renewable energy supply. Under the contract, the center provides renewable energy covering around 30 percent of total energy consumption at the site.

The selling price of renewable-sourced electricity is further cut down with help from 1.8-megawatt fuel cells inside the center, SK ecoplant explained.

While hydrogen itself is not categorized as a renewable energy source, the center generates profits from selling electricity produced with fuel cells and is therefore able to bring down renewable prices for its clients.

SK ecoplant is also in the process of validating a water electrolysis device, which electrolyzes water to generate green hydrogen, at the Changwon center in a pilot operation.

In order to facilitate the operation and management of renewable sites scattered across the country, SK ecoplant has set up an RE100 platform as well, and plans to use the platform to provide a diverse mix of solar, wind, small hydropower and biomass energy based on the client’s needs.

The company, which rebranded itself from SK Engineering & Construction in 2021, is rapidly diversifying its portfolio in the sustainability sector.

SK oceanplant, SK ecoplant’s wind turbine substructure subsidiary, is another prominent pillar in its renewables business.

Wind turbine substructures standing at SK oceanplant's production yard in Goseong, South Gyeongsang [SK ECOPLANT]

In the 510,000-square-meter (125-acre) production yard of SK oceanplant in Goseong, South Gyeongsang, massive 2,000-ton wind turbine substructures towered over the site.

Named jackets, the three-legged substructure is used at fixed offshore wind farms. SK oceanplant is the largest jacket supplier in Asia, and currently represents 44 percent of the wind substructure market in Taiwan.

SK oceanplant has another yard, measuring 420,00 square meters, where it produces cylindrical steel plates, which are later manufactured into jackets.

Riding on the strong demand, the company is building its third yard, situated between the first and second yards, measuring a whopping 1.57 million square meters.

Recently, SK oceanplant was selected as the preferred supplier for a major 532-megawatt offshore wind farm project off Korea’s southwestern coast. SK ecoplant will handle the transportation and installation of SK oceanplant’s substructures.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]